Argentina's new President Milei to dismiss 70,000 government employees

Argentine President Javier Milei announced plans to dismiss 70,000 government employees in the coming months, showcasing his chainsaw-style approach to radically reduce the size of the state, according toBloomberg report.

Milei boasted at an event that he's frozen public works, cut off some funding to regional governments and terminated more than 200,000 social welfare plans, which he labeled as corrupt.

It is all part of his planning to reach a fiscal balance at any cost this year, as per reports.

"There's a lot of blender," Milei said in an speech at the IEFA Latam Forum in Buenos Aires, referring to the wearing down of wages and pensions by 276 per cent annual inflation. "There's a lot more chainsaw."

Milei's job cuts may put his high support ratings in jeopardy, even if they only affect a small portion of Argentina's 3.5 million public sector workers. The country's strong labour unions will undoubtedly oppose them.

A government investigation revealed that after he took office in December, workers in the private sector had the biggest one-month wage reduction in at least three decades. Meanwhile, one union that represents certain government employees went on strike on Tuesday.

The leader of the state workers union ATE quickly shot back on X, announcing a national strike without providing further details.

Milei cited polls showing Argentines are more optimistic about the economy's future, while a recent indicator of the public confidence in the government rose despite his austerity measures.

"People have hope, they're seeing the light at the end of the tunnel," said Milei.

(With inputs from agencies)